Asset Quality Score
This test's purpose is to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as unpaid mortgages.
A credit union with a large number of these kinds of assets could eventually have to use capital to cover losses, decreasing its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in diminished earnings and potentially more risk of a future failure.
ALLIANCE scored below the national average of 38.15 on Bankrate's test of asset quality, racking up 36 out of a possible 40 points .
The credit union's ratio of problem assets was 7.00 percent in our test, identical to the national average.